English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.
This Article distinguishes an agent acting in its own name from an agent acting in the name and for the account of the principal. The former is treated as making or receiving the Supply itself; the latter acts on behalf of the principal if that capacity is evidenced.
Agents, platforms, intermediaries and principals through whom Supplies are arranged.
The name on the contract and invoice and the manner of dealing determine the Supply chain, invoicing and VAT Return treatment. An internal agency label is not enough.
Current text
Determine the agent's capacity
- 1
Identify whether the agent contracts in its own name or in the name and for the account of the principal.
- 2
Review the contract, invoice and communications to see who appears to the third party as supplier or customer.
- 3
For a disclosed agent, retain the authority and documents required by the Regulations.
- 4
Determine the invoicing and Return treatment of the underlying Supply and the agent's commission.
Connected provisions
Official guides and tools
A platform selling in its own name or the seller's name
A platform that contracts and invoices in its own name may be treated as receiving and making the Supply itself. If the original seller is disclosed and the platform's agency is properly evidenced, the Supply chain differs.
Questions to help you apply it
- In whose name were the contract and invoice issued?
- Do the documents prove that the agent acted in the name and for the account of the principal?
- Who reports the underlying Supply and the commission?